Markets trade with solid gains; Sensex surges over 800 points

Indian equity markets magnified their gains and were trading with solid rallies in late morning deals on account of hectic buying by market participants. Frontline gauges surged above their crucial 59,700 (Sensex) and 17,550 (Nifty) levels. Markets extended their gains after activity in India's dominant services sector expanded at the fastest pace in 12 years in February on strong demand as price pressures eased further amid mild job rises & capacity pressures in the country. Firm global cues also supported domestic sentiments. Further, sentiment got a boost as Chief Economic Advisor V Anantha Nageswaran expressed hope that the GDP growth for the current financial year will exceed the projected 7 per cent in view of the expected revision of high frequency data. Sentiments were also supported by Indian rupee appreciating 35 paise to 82.25 against the dollar at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks.

On the global front, Asian markets were trading mostly higher following the broadly positive cues from global markets overnight. Back home, Adani  group stocks were in focus after U.S. investment firm GQG Partners completed almost-$2 billion investment in Adani group stocks.

The BSE Sensex is currently trading at 59717.12, up by 807.77 points or 1.37% after trading in a range of 59231.58 and 59732.61. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.65%, while Small cap index up by 0.75%.

The top gaining sectoral indices on the BSE were Utilities up by 2.55%, PSU up by 2.22%, Power up by 2.17%, Bankex up by 2.11% and Telecom up by 1.33%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were SBI up by 4.46%, Bharti Airtel up by 2.34%, Power Grid up by 2.11%, NTPC up by 2.05% and HDFC Bank up by 2.00%. On the flip side, Ultratech Cement down by 0.94%, Tech Mahindra down by 0.52%, Asian Paints down by 0.46% and Nestle down by 0.16% were the only losers.

Meanwhile, credit rating agency Crisil in its latest report said that power prices are expected to remain firm next fiscal (FY24) on the back of elevated demand growth of 5.5-6 per cent, and the demand is set to close this fiscal up 9.5-10 per cent over 8.2 per cent last fiscal. It also said the fear of a heat wave has seen the short-term power prices soaring by a full 151 per cent. This was on the back of a 42 per cent on-year spike in prices in February.

According to the report, the demand growth would mark a decadal high rate of growth and almost double the 20-year average of 5.2 per cent. It noted that demand growth weighed in at 7.7 per cent in February and averaged 10 per cent for the 11 months of the current fiscal despite a high base of fiscal 2022 due to extreme weather events and robust industrial and manufacturing activity. March is unlikely to see any let up amid early warnings on possible heat waves in northern and central regions this summer.

It further said that a hotter-than-usual summer with a high probability of multiple heat waves is expected to keep power demand growing even next fiscal at 5.5-6 per cent, despite two straight years of robust growth. The first half should see even higher growth. 

The CNX Nifty is currently trading at 17561.75, up by 239.85 points or 1.38% after trading in a range of 17427.70 and 17569.65. There were 44 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 13.14%, Adani Ports up by 7.93%, SBI up by 4.52%, Bharti Airtel up by 2.49% and HDFC Bank up by 1.98%. On the flip side, Ultratech Cement down by 0.84%, Asian Paints down by 0.60%, Tech Mahindra down by 0.52%, Divi's Lab down by 0.17% and Cipla down by 0.10% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted added 9.7 points or 0.06% to 15,608.42, Hang Seng advanced 186.05 points or 0.91% to 20,615.51, Shanghai Composite strengthened 11.41 points or 0.34% to 3,322.06, KOSPI increased 4.52 points or 0.19% to 2,432.37, Straits Times rose 2.67 points or 0.08% to 3,237.57 and Nikkei 225 surged 428.6 points or 1.56% to 27,927.47. However, Jakarta Composite plunged 42.42 points or 0.62% to 6,815.00.